Apple Projections Cause Stock Increase for Foxconn
With Apple’s success continuing to grow, it turns out it isn’t the only one seeing a recent high. Stock in Apple’s primary manufacturing partner, Foxconn, climbed to a recent high on speculation that Apple might be using metal casing for the next-generation iPhone.
The speculation seems to be in line with what Morgan Stanley analyst Katy Huberty noted just last month. Huberty believes that Apple is moving away from the glass casing used on the iPhone 4 and the iPhone 4S and is moving to a metal casing instead. Shortly after the prediction, Foxconn spokesman Cheng-Kuang Liu, wisely declined to comment about the rumors. It should be noted that the use of metal in the new iPhone would benefit companies like Foxconn that not only assemble Apple products, but also produce the metal casings as well.
The company’s share price surged almost seven percent yesterday on what so far is a baseless speculation along with some positive news being shed on Apple’s behalf regarding factory working conditions. It isn’t much of a surprise to see those closely connected to Apple to see a stock price increase as Apple’s sales, profits, and shares increase.